Should I Rent Or Should I Buy? How To Begin Answering This Question.
Income is $51k, single, have $30k saved up and I want to live here for a long time but I want to make the smart decision between renting and buying.
I’ve been pre-approved with a lender for 5% down-conventional, 4.8% apr, looking in the $240k price range. My estimated mortgage on places I’m considering are about $1600-$1700/month with HOA, taxes, insurances all accounted for. And that’s what I split with a roommate at the moment in a 2bed/2bath.
Looking at the numbers the amount of interest is terrifying, but is owning a better financial decision than renting in my case?
EDIT: Of course my agent/lender are saying it’s wise, but I’m looking for an unbiased opinion.
Do you want to own property? Like others have mentioned already, this should be where this decision begins. If so, many other things that fit into a change of lifestyle that comes with homeownership should come as a welcomed, rather than forced, change.
Once you have made this decision, would you want to live in the property then sell once you are ready to move or do you have aspirations to start building an investment property portfolio?
People have an interesting way of making this decision sound either incredibly smart: Look at all the upsides, don’t miss out! OR incredibly stupid: This market is a bubble and welcome to the home depot club loser! What I would recommend is you start looking where reality lives and that’s somewhere in between.
By the looks of it, you are qualified to buy, but the above are just two of many facets to consider if the potential financials benefits are (1) advisable to your entire financial picture and (2) do the benefits of buying out weight those of renting.
Let’s say you want to hold the property for 3 years, have you considered the N Line that is opening up through Thornton and how this could affect property values within your expected timeframe to realize the upside? Let’s say you want to hold for 10, will the advancement down Colfax continue and positively affect you in that time? Do you plan to hold for 30 and will the ebbs and flows really matter if you are content and still employed?
This deserves so much more discussion and insight than what is being offered here. I would recommend you talk to your agent and/or someone who is ‘qualified’/has earned your trust to deep dive these and many other paths prior to even narrowing down your search locations. They all matter to some degree, the question is what are your risk tolerances and life plans.
Work with those who earn your trust and always protect yourself.
Source: The opinion of this licensed real estate broker in Denver, CO.
Original question and response sourced from: